The Indian real estate sector is about to experience a surge in interest from international investors, including Gaziz Globe and Big Shopping Group from Israel, Mirax from Russia, and others from Eastern and Western Europe. Collectively, these investors are expected to pour approximately Rs 10,000 crore into Indian property investments that are FDI compliant, utilizing the PE route in the ensuing months.
This development is anticipated to provide much-needed relief to developers who are facing increasing challenges in securing funds from banks. Jones Lang LaSalle Meghraj (JLLM) is currently facilitating these transactions.
It is understood that numerous funds from Israel have already acquired large parcels of land in Goa and are actively seeking additional land and property opportunities elsewhere. Anuj Puri, chairman & country head of JLLM, sheds light on the prevailing liquidity challenges in the Indian real estate market, emphasizing how funds from Israel and Russia will offer a much-needed lifeline to Indian developers.
Given that PE players are channelling their investments into Indian properties that comply with FDI regulations, the funds will be dedicated to the ongoing construction of properties exceeding 50,000 sq m in size. These investors are prohibited from investing in ready property.
Gaziz Globe is diversifying its portfolio by investing in various retail projects, while Big Shopping Group is directing its investments towards new retail projects in Pune and Mumbai. Simultaneously, Mirax, based in Russia, is conducting a feasibility assessment for potential investments in developments in Mumbai. Additionally, Kardan Group from Israel is involved in investing in an SEZ in Pune.